tinydancer
Diamond Member
Great article here that points out clearly that government spending in Britain has not stopped.
Not decreased by a penny.
This is why they got downgraded. I know the left in America are desperate to attempt to prove that cutting expenses will hurt a country.
But whoopsies. Facts get in the way.
The great lie of our times: The Left wail about 'ruthless' cuts.
But the reason Britain's credit rating was downgraded is that government spending hasn't fallen by a penny
From the article:
The truth is that this is utter nonsense. In fact, Britains monstrously swollen state still devours almost half the nations output.
Total state spending and borrowing has not been cut in absolute terms at all.
Indeed, the burden of debt, the accumulated amount of borrowing made by governments down the years, is rising relentlessly.
It was an understanding of this stark truth that led to Britain losing its AAA credit rating last week. The worlds market monitors finally lost patience with our inability to control our borrowing and lack of economic growth.
As the credit analysts at Moodys point out, Britains burden of debt will keep rising until 2016, when it is expected to reach a staggering peak of 96 per cent of GDP of total output.
Even that horrifyingly large sum will not be the true figure.
For the Government is guilty of a sleight of hand by trying to make the statistics look more healthy by boosting the Exchequers ledger (with the help of an unexpected windfall worth billions from the Bank of Englands policy of printing extra money). This amounts to a piece of accounting trickery that makes the volume of debt look smaller than it really is.
The fundamental truth remains that most areas of state spending particularly welfare payments and social security are still growing uncontrollably.
This may not be apparent when you hear the deafening chorus clamouring for the Government to change course and to protect welfare payments at a time of rising unemployment. But the fact is, the total cost of unemployment payments should be shrinking.
It is true that traditional economic theory teaches us that welfare payments automatically rise during a recession because of the increase in the numbers of people laid off or who cant find work.
But in Britains case now, in stark contrast to countries such as Spain and Italy, the rate of unemployment has actually been falling for almost a year. A remarkable 580,000 new jobs have been created, mostly in the private sector.
Yet the problem for Britain a deeply worrying one is that welfare bills and borrowing levels are still rising.
More truth at link:
The great lie of our times: The Left wail about 'ruthless' cuts. But the reason Britain's credit rating was downgraded is that government spending hasn't fallen by a penny | Mail Online
Not decreased by a penny.
This is why they got downgraded. I know the left in America are desperate to attempt to prove that cutting expenses will hurt a country.
But whoopsies. Facts get in the way.
The great lie of our times: The Left wail about 'ruthless' cuts.
But the reason Britain's credit rating was downgraded is that government spending hasn't fallen by a penny
From the article:
The truth is that this is utter nonsense. In fact, Britains monstrously swollen state still devours almost half the nations output.
Total state spending and borrowing has not been cut in absolute terms at all.
Indeed, the burden of debt, the accumulated amount of borrowing made by governments down the years, is rising relentlessly.
It was an understanding of this stark truth that led to Britain losing its AAA credit rating last week. The worlds market monitors finally lost patience with our inability to control our borrowing and lack of economic growth.
As the credit analysts at Moodys point out, Britains burden of debt will keep rising until 2016, when it is expected to reach a staggering peak of 96 per cent of GDP of total output.
Even that horrifyingly large sum will not be the true figure.
For the Government is guilty of a sleight of hand by trying to make the statistics look more healthy by boosting the Exchequers ledger (with the help of an unexpected windfall worth billions from the Bank of Englands policy of printing extra money). This amounts to a piece of accounting trickery that makes the volume of debt look smaller than it really is.
The fundamental truth remains that most areas of state spending particularly welfare payments and social security are still growing uncontrollably.
This may not be apparent when you hear the deafening chorus clamouring for the Government to change course and to protect welfare payments at a time of rising unemployment. But the fact is, the total cost of unemployment payments should be shrinking.
It is true that traditional economic theory teaches us that welfare payments automatically rise during a recession because of the increase in the numbers of people laid off or who cant find work.
But in Britains case now, in stark contrast to countries such as Spain and Italy, the rate of unemployment has actually been falling for almost a year. A remarkable 580,000 new jobs have been created, mostly in the private sector.
Yet the problem for Britain a deeply worrying one is that welfare bills and borrowing levels are still rising.
More truth at link:
The great lie of our times: The Left wail about 'ruthless' cuts. But the reason Britain's credit rating was downgraded is that government spending hasn't fallen by a penny | Mail Online
